Quincy mayor gave developer flexibility with missed deadlines

Mayor Thomas Koch said he tried to be flexible with Street-Works Development, giving the city's partner in the $1.6 billion Quincy Center project leeway on four missed deadlines before finally putting the company on notice of default.

QUINCY – The city’s partner in the $1.6 billion downtown development project paid the city $500,000 in fees to secure 11 extensions for site plans and financial report deadlines dating back to January 2012.

But it was not until 12 weeks after the last of four other missed deadlines that Mayor Thomas Koch threatened to end Quincy’s relationship with downtown developer Street-Works, saying the company would be in default if required filings are not made by March 20.

Koch said he tried to be flexible when Street-Works missed deadlines in May, July and September without paying for extensions on time. The official groundbreaking ceremony for the project occurred during that same time period, in late June. The latest deadline passed Nov. 24.

“I didn’t see it as a violation at the time,” Koch said. “Now, several months later, it is. And quite frankly, that’s the difference. Several months of Street-Works’ inability to seek an extension, I saw as a sign that they didn’t have the capital to extend.”

On Dec. 17, three weeks after the latest filing deadline, Koch spoke at a special Quincy Chamber of Commerce event and told more than 150 local business owners that changes were needed in the 2010 land disposition agreement between the city and Street-Works.

In December, Koch, who was unopposed for re-election in November, said the changes in the agreement were needed to help Street-Works carry out the project, but he made no mention of the developer’s repeated failures to comply with the agreement.

“Did the city know (about Street-Works’ default) after Nov. 24, and why would you hold a meeting in December and say the land disposition agreement needed to change,” said Neil Kiley, owner of the Fat Cat restaurant on Chestnut Street. “Why wouldn’t you just tell us everything?”

Koch said he used his own discretion to give Street-Works more time to either make the filings or pay for another extension. He said it became apparent to him in recent months that Street-Works didn’t have the necessary funding.

“In the end, if they can’t capitalize, they can’t execute,” Koch said.

Ken Narva, managing partner at Street-Works, wouldn’t comment this week because of a recent death in his family. Other Street-Works officials did not return calls for comment.

According to the city, Street-Works first missed its filing deadline last May, eventually paying the $50,000 extension fee two months later, in July. Then, in October, it paid the city $100,000 to secure two retroactive extensions, pushing the deadline to Nov. 24.

Street-Works’ first step of redevelopment was expected to be the largest phase of the project, involving the creation of least 500,000 square feet of new retail, residential, office and hospitality space. Also, the first step required the developer to purchase Ross Garage and Hancock Parking Lot from the city for $4.8 million.

Page 2 of 2 - In total, Street-Works has paid $750,000 in Step 1 extension payments and a $100,000 deposit for the Ross Garage, the city says. Christopher Walker, a spokesman for Koch, said this money is sitting in an escrow account, and that its fate was unknown as of Wednesday.

In addition, the city says it has spent $728,250 from a peer-review consulting account funded by Street-Works. The account currently contains $96,750.52.